VanEck lists the VanEck Vectors™ Hydrogen Economy UCITS ETF on London Stock Exchange as of today.
Martijn Rozemuller, Head of Europe at VanEck
– The VanEck Vectors™ Hydrogen Economy UCITS ETF allows investors to invest in a global selection of companies in the hydrogen industry
– The ETF focuses primarily on companies that generate at least 50 percent of their sales in the hydrogen industry
The ETF invests globally in companies that generate their sales primarily in the hydrogen sector, such as hydrogen producers, fuel cell manufacturers or companies in the electrolysis sector.
The ETF is the most focused hydrogen ETF to date with the aim of providing investors with the most accurate representation of the sector possible. “Together with our index team at MVIS, we have worked to develop the most targeted investment solution in the hydrogen space, differentiating it from the broader solutions that have come before,” explains Martijn Rozemuller, Head of Europe at VanEck.
With climate change in mind, more and more governments around the world are committing to drastically reduce CO2 emissions or even create a carbon-free economy. Hydrogen as a clean energy source is considered an important part of the solution and an energy source of the future.
“Investors are increasingly looking for investment opportunities in sustainable technologies and solutions for the future,” explains Dominik Schmaus, Product Manager at VanEck. “With our VanEck Vectors™ Hydrogen Economy UCITS ETF, we offer them the opportunity to invest broadly in the future technology of hydrogen to participate in the long-term CO2 reduction in many sectors of the economy.”
For the year 2050 – by which time many large economies aim to be CO2 neutral – the consulting firm McKinsey expects that hydrogen will play an important role in sectors such as shipping, bus transport, steel production, building heating or even as electricity storage. The European Commission has placed hydrogen at the centre of its plans for an energy transition and wants to have at least 40 gigawatts of electrolysers, i.e. hydrogen production facilities, available by 2030, only 9 years away.
Investment in companies with a focus on hydrogen technology
“The importance of hydrogen as an elementary energy source and raw material in many areas of industry and economy will continue to grow in order to successfully drive their decarbonisation,” says Rozemuller. “By investing in hydrogen companies, investors can participate in this process and in the long-term development of these companies.”With a so-called pure-play approach, the ETF focuses on companies that mainly generate at least 50 percent of their sales in the hydrogen industry or that will do so in the foreseeable future. “So, investors can be sure that their investment will mainly go to companies that focus on the future technology of hydrogen,” says Dominik Schmaus, Product Manager at VanEck.
The VanEck Vectors™ Hydrogen Economy UCITS ETF tracks the MVIS Global Hydrogen Economy Index, which is designed to represent the overall performance of the global hydrogen segment. The index seeks to track the most liquid companies in the industry based on market cap and trading volume. To some extent, fuel cell and industrial gas companies are also considered.
Despite all the advantages, an investment in the hydrogen economy involves a risk of capital loss. The value of an investment may go up or down and investors may not get back the amount they invested. Past performance is no guarantee of future performance and should not be relied upon as the sole factor when selecting a product.
|ETF||VanEck Vectors™ Hydrogen Economy UCITS ETF|
|Index name||MVIS Global Hydrogen Economy Index|
|Ticker LSE USD / LSE GB||HDRO / HDGB|
|Ticker Bloomberg||HDRO LN / HDGB LN|
|Capital management company||VanEck Asset Management B.V.|
|Domicile of the capital
|Index provider||MV Index Solutions GmbH|
|Product structure||Physically replicating|
|Launch date||26 March 2021|
|Total expense ratio (TER)||0.55 % p.a.|
|Appropriation of earnings||Retention|